Bridger Bowl Ski Area Case Study

Today’s market is characterized by highly competitive organizations which are all vying for consumer loyalty. Firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth. Most companies find it impossible to create any kind of sustainable competitive advantage based on product alone. It is common knowledge that every one of the successful companies sought and found a precise understanding of how it could create a customer-centered competitive advantage. Hessan & Whitely (1996) emphasized the idea to take advantage of the competitive situation not just by being better in how that product gets sold, serviced, and marketed at the customer interface. It requires that companies create breakthroughs in how they interact with customers, and design a way of interacting that makes an indelible impression on customers, one that so utterly distinguishes them from others that it becomes a brand in itself.

The Bridger Bowl Ski Area was a medium-sized ski area located 16 miles northeast of Bozeman, Montana. It has several amenities that cater to the need of its target market – the skiers. Among these amenities are lifts, chalets, lodging houses, public transport system, and other facilities to name a few. It started its operation in the 1960 and was originally conceived as a “family ski area” with minimal rates and family-focused entertainment. With the constant operation of Bridger Bowl Ski Area, there are plans to be implemented to augment the existing advantage of the company. Thus, the problem lies to the strategic implementation of existing plans that will eventually improved the services it offers for the next year’s operation. Another problem is directed to the product/service development.

Assumptions

Companies employ detailed business plans and strategies in order to gain several benefits from its competitors such as increased profits and enhanced customer relations as company objectives. According to Cohen and Moore (2000) balance between enhanced company processes and renewed objectives should be critically appraised in order to ensure the success of the company.

The application of strategies directed towards the achievement of the objectives naturally requires the allocation of financial resources. The business, in order to effectively execute any business strategy or plan, should be able to determine and identify first the resources that are available in the company.

Similarly, every business wants to have a regular customer base because customers dictate profits and how the customer is treated will reflect on whether the customers will remain loyal with the company or not. Gaining customer loyalty is also a key corporate challenge today especially in this increasingly competitive and crowded marketplace because of the eventual profitability it will provide (Chow & Holden, 1997).

Moreover, it is a management philosophy that seeks to integrate all organizational functions such as marketing, finance, design, engineering, production, customer service, and others to focus on meeting customer needs and organizational objectives (Hashmi, 2000).

However, while the company is capable of providing a budget, the outcomes should be able to recover these allocations in order to prevent capital losses. Thus, the company should employ strategies and create objectives that are compatible to the capacity of the company and what it intends to achieve.

Key Strengths

The long period of operation is one of the major strengths of Bridger Bowl Ski Area. Since it pioneered to the said line of industry, it created a reputation and lifetime trademark. It is the largest and one of the most influential amusement (ski) parks in the region. The strengths of the company include the use of technologically updated equipment and machineries which facilitates efficient services to the targeted market. These technologies make it possible for the business organization to function efficiently and serve the large customer-base who depends on the services of the general public. A major strength is the long years of existence in the industry. The name is still popular among the people who are aware of its continuation. It interests the people to have for its services. Such interest keeps the business running.

The Bridger Bowl Ski Area has the advantage of a family-oriented and homely environment that the customers love. The presence of different family-friendly amenities that add to the enjoyable and productive stay of customers reflects a competitive advantage. Guests especially those who ski for hobby, leisure and pleasure is on the look for a place to stay that will feel better than the comfort of other ski areas. Thus, customers are more likely to stay to other areas that can offer better facilities and/or services. The fact that Bridger Bowl Ski Area continues to maintain its pioneering offers to its loyal and potential clients, this is definitely an aspect that the company has to capitalize on. As a ski area, it is definitely an advantage when your customers feel comfortable and much more have fun during their stay.

Furthermore, guests are mostly local in nature aside from the occasional influx of ski travelers. Thus, they have the greater need to feel comfortable and enjoyable. If the customers and/or guests feel comfortable they have the more likely to stay longer and/or return after their stay. Aside from that, the company will benefit from the “word of mouth” promotion of the satisfied customers. Bridger Bowl Ski Area benefits from the “word of mouth” promotion of the people who experienced and stayed in the ski park. Customers are more likely to be encouraged to go and try the services if they hear from the townspeople or previous clients themselves about the business. The knowledge of the existing and previous clients, townspeople, and others with the presence of the ski area will have a positive reflection on its image.

Being the first ski area to operate in the market, Bridger Bowl Ski Area possesses the most innovative services and ideas that will be applied to improve its services. Additionally, related aspect in which works as its strength is the enthusiastic employees working in the park. Enthusiastic employees will reflect on the quality of service that they will provide the guests and customers. Further, dedicated employees will create a lively and friendly environment that will not only encourage more guests but at the same time, motivate the employees themselves to work better.

Weaknesses

Bridger Bowl Ski Area has been operating since the 1960s. Hence, there are several parts of the area that needs renovations. The old structures within and outside the area needs further improvement. Such renovations may sooner or later cause some losses because of the extensive beautification of specific areas. The renovations that have to be done, being done and to be done in the future must agree with the needs of every individual concern.

The ski area also lacks the necessary advertising and promotional strategies that can attract the customers to try their services and/or stay. It is also important that the ski area must develop an image (and of course, maintain that image) that will catch the customer’s attention and eventually the customer’s interest.

The wide array of services that the company is engaged in makes the management of the whole enterprise cumbersome. Since it is involved in the generation, manipulation, and maintenance of the operations, monitor, and control aspects of the business entails understanding of the complex internal and external relationships and contracts. As such, business relations among customers and suppliers demands strategic selection of business options. Moreover, the development efforts and research initiatives and projects that the company invest in order to maintain continuous operation and competitive position call for wise selection of business opportunities as well as skilled leadership and risk management skills among its decision-makers.

Response to Competition

It is given that Bridger Bowl Ski Area monopolized the industry for a couple of years. The situation changed upon the entry of its first competitor – the Big Sky of Montana, a multi-million-dollar ski resort area with complete facilities that attracted several skiers from all over the country. But then again, the latter ski resort did not overcome the popularity and patronage of Bridger’s clients due to some considerations such as price rates. The next potential competitor is the Ski Yellowstone, Inc. that is situated near 50 miles from Big Sky. It is expected to operate after five years of completion. Thus, the competition of proximity began with the aforementioned ski parks.

With the emerging competition, the management of Bridger Bowl Ski Area created a planning committee that catered to specific areas of its operations. In a Board of Directors meeting, they decided to take immediate action to combat the existing competition. Then, several sub-committees were created namely mountain, base, finance, and marketing. Each specialized sub-committee studied, analyzed, presented, recommended, and applied several decisions that eventually improved the services rendered by the company.

Understanding the dynamics of the competitors in the industry helps assess the potential opportunities of every business venture by differentiating the similar products or services offered by the company against other business organizations. As such, it is necessary to realistically assess potential levels of profitability, opportunity and risk based on five key factors within an industry so as to determine the long-term profitability of a market or market segment.

Product/Service Development

The technological upheaval and intense international competition tender significant challenges to an organization’s capability to keep up their competitiveness (Bettis & Hitt, 1995; Hitt, Keats, & DeMarie, 1998). This fast alteration and dispersal of new technology, together with considerable competition in local and global markets, has provided a rising significance on organizations' capability to innovate and launch new innovations into the marketplace (Franko, 1989). In effect, innovation may possibly be necessary to sustain or acquire competitive correspondence, much less a competitive advantage in a lot of international markets.

Product/service development is crucial for success, continued existence, and restitution of companies that function in fast-paced and competitive markets (Brown & Eisenhardt, 1995). Actually, Schoonhoven, Eisenhardt, and Lyman (1990) contend that product/service development tenders a serious means by which organizations branch out, become accustomed, and reinvent themselves to correspond with the changing technical and market situations. Because of its significance, there has been substantial research on new product/service innovation. Similarly, a growing stress is being placed on attempting to recognize the particular procedures by which new products/services are created and launched to the market.

Obviously, more knowledge of these procedures is required (Dougherty & Heller, 1994). This is specifically accurate as organizations try to work out new arrangements and processes to augment the efficiency of new product/service development and to complete it at a much quicker rate than in past years (Dougherty & Corse, 1995). Bartlett and Ghoshal (1996) contend that a fundamental prerequisite for companies like Bridger Bowl Ski Area management is to get rid of organizational arrangements that complicates individual responsibility and even out personal acts (p. 37). In addition, Fiol (1995) puts forward that large multifunctional companies afford rich environments for these kinds of actions. The key is to hold up and incorporate the different and frequently opposing kinds of knowledge from different and detached functional fields.

In relation to the operation of Bridger Bowl Ski Area, there is a need to further enhance the product/service that they are offering. There are several facilities that need to be added to sustain the diverse and dynamic demands of the customers. There s a need to focus on several segment s that require innovations and improvements. One of the core characteristics of a successful organization is focus. Since the business environments are fast becoming more and more complex added to the fact that it changes rapidly and dynamically, businesses need to concentrate on a few key elements that are most important to their organizations survival. Thus, it is not surprising the critical success factors keep the organizations from straying too far with external issues not relevant to their company’s success.

Critical success factors (CSFs) in business, are the limited number of areas in which results, if they are satisfactory can ensure that successful competitive advantage for the company (Thierauf, 2001). Determining these factors is an old concept in business because there were great leaders throughout history who have identified and addressed key factors to achieve their successes. There is no one definition of CSF but it is considered that these are the areas which the company needs to concentrate on to flourish. Therefore, the activities should be carefully monitored and guided by the management.

Chung (1987) defined critical success factors as managerial factors that create a competitive edge for a company in its respective industry. There is no specific process in identifying and executing critical success factors in strategic management planning. This is the reason why Thierauf (2001) asserts that different companies which have similar structure can conduct its market entry forming different strategies which lead to the development of various critical factors. As the primary means for an organization to achieve its strategy, critical success factors must take into account the differences in the environment and organization that exists.

Recommendations

Aside from the aforementioned partial recommendations, the Bridger Bowl Area management should pay attention to their planning of marketing strategies, production management, and research and development (R&D) for the next twelve months.

The process of defining, anticipating, creating, and fulfilling customers’ needs and wants for products and services is called marketing, and this serves seven basic functions: customer analysis (the examination and evaluation of consumer needs, desires, and wants), selling products / services (this includes many marketing activities that are critical for a firm that pursues market penetration strategy, which include advertising, sales promotion, publicity, personal selling, sales force management, customer relations, and dealer relations), products and service planning (this is important when a company is pursuing product development or diversification, and includes activities such as test marketing; product and brand positioning; devising warranties; packaging; determining product options, features, style, and quality; deleting old products, and providing customer service), pricing (which is affected by consumers, government, suppliers, distributors, and competitors), distribution (which becomes important when a firm is striving to implement a market development or forward integration strategy, and it includes warehousing, distribution channels, distribution coverage, retail site locations, sale territories, inventory levels and locations, transportation carriers, wholesaling, and retailing), marketing research (the systematic gathering, recording, and analysing of data about problems in relation to the marketing of goods and services; this can uncover critical strengths and weaknesses of a business, and marketing research activities support all of the major business functions of an organisation), and opportunity analysis (involves assessing the costs, benefits, and risks associated with marketing decisions) (David, 2001, pp. 137-141).

On the other hand, production / operations management deals with inputs, transformations, and outputs that vary across industries and markets, and it serves five basic functions: process (process decisions concern the design of the physical production system; specific decisions include choice of technology, facility layout, process flow analysis, facility location, line balancing, process control, and transportation analysis), capacity (capacity decisions concern determination of optimal output levels for the organisation, which is neither too much or too little; specific decisions include forecasting, facilities planning, aggregate planning, scheduling, capacity planning, queuing analysis), inventory (inventory decisions involve managing the level of raw materials, work in process, and finish goods; specific decisions include what to order, when to order, how much to order, and materials handling), workforce (workforce decisions are concerned with managing the skilled, unskilled, clerical, and managerial employees; specific decisions include job design, work measurement, job enrichment, work standards, and motivation techniques), and finally, quality (quality decisions are aimed at ensuring that high-quality goods and services are produced; specific decisions include quality control, sampling, testing, quality assurance, and cost control) (David, 2001, p. 146).

Meanwhile, R&D expenditures are aimed at developing new products before competitors do, improving product quality, or improving manufacturing process to reduce costs (David, 2001, p. 149). Many companies invest in R&D because they believe that such investment will result to superior product or services and will give them competitive advantage. (David, 2001, p. 149)

With the presented solution to the strategic planning implementation and product/service development of Bridger Bowl Ski Area, it is deemed that the company will continue flourishing and meet the demands of the chosen line of industry and market.

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